Indian government goes to war over 75% stent price reduction

The National Pharmaceutical Pricing Authority (NPPA), India’s drug pricing regulator, moved to lower the price of the newest generation of stents by 75% on 15 February, a decision that ruffled the feathers of major manufacturers Abbott, Boston Scientific and Medtronic. In reaction to the heavy price reduction, all three manufacturers applied to withdraw their products from the market – only for the Indian government to impose a six month ban on manufacturers pulling their products from market.

On top of being unable to withdraw their products from market, they have been instructed to deliver a weekly report on coronary stents produced and distributed. The companies involved have stated that they believe the price changes will make their products financially unsustainable in the market. All three companies have suggested that they have remained in constant contact with the NPPA to negotiate the price of their products after the 15 February decision.

The price changes relate to drug eluting and biodegradable stents. Currently, bare metal stents have a cap of Rs7,260 per unit while the more technological complex stents have had their prices fixed at Rs29,600.

The move from the Indian government came after reports that the hospitals had been overcharging patients on the previously uncapped drug eluting and biodegradable stents, reaping profit on the products.

The action had angered the manufacturers and the Department of Pharmaceuticals had reported that after the price reduction, there were reports of shortages of coronary stents in hospitals. The enforcement of continued manufacture of the devices then will buy the Indian government time by ensuring the supply whilst allowing them to negotiate further with the various multinational companies that hold a stake in the medical devices market in India.

Cardiac stents are wire mesh tubes that are used to unclog coronary arteries in the prevention of heart attacks.